Lagos State Governor Babajide Sanwo-Olu on Monday, January 19, 2026, signed the ₦4.444 trillion 2026 Appropriation Bill into law, officially launching the state's fiscal framework for the year. The ceremony took place at the Conference Room of Lagos House, Alausa Secretariat, in Ikeja, marking a key milestone in the administration's final full-year budget process.
The budget, officially titled the “Budget of Shared Prosperity,” authorizes a total expenditure of ₦4,444,509,776,438 for the 2026 fiscal year ending December 31, 2026. This figure represents a notable increase from the initial proposal of ₦4.237 trillion presented by Governor Sanwo-Olu to the Lagos State House of Assembly on November 25, 2025. The Assembly, after thorough deliberations and committee reviews, approved the enhanced version on January 8, 2026, reflecting confidence in the state's economic potential and the need for additional investments in priority areas.
The signing event was attended by prominent dignitaries, including Deputy Governor Dr. Obafemi Hamzat, members of the State Executive Council, Head of Service Bode Agoro, lawmakers from the Lagos State House of Assembly, and other top government officials. Their presence underscored the collaborative spirit between the executive and legislative arms in shaping the state's financial direction.
In his remarks following the assent, Governor Sanwo-Olu emphasized the budget's focus on deepening inclusive growth and enhancing the quality of life for all residents. “Our mission remains clear: to eradicate poverty and build a Lagos that works for all,” he stated. He further elaborated that the vision is to create a “Greater Lagos where shared prosperity is not an aspiration but a lived and felt reality.”
The governor highlighted that the 2026 fiscal plan is anchored on four key pillars: a human-centred development strategy, investment in modern infrastructure, the promotion of a thriving economy, and effective governance. These pillars align seamlessly with the state's evolved T.H.E.M.E.S+ Agenda, which has served as the blueprint for long-term development since his administration began in 2019. The agenda prioritizes themes such as traffic management, health and environment, education, making Lagos a 21st-century economy, entertainment and tourism, security and governance, plus additional emphases on sustainability and inclusivity.
A breakdown of the budget reveals a strong emphasis on capital projects, which account for over 52% of the total allocation. Recurrent expenditure is set at approximately ₦2.107 trillion (including personnel costs, overheads, and debt servicing), while capital expenditure stands at around ₦2.338 trillion. This capital-heavy structure continues the state's tradition of prioritizing long-term infrastructure and development over routine spending, aiming to consolidate legacy projects in the administration's concluding phase.
Sectoral allocations, based on the original proposal and adjusted during legislative review, reflect strategic priorities. Economic Affairs receives the largest share, with significant investments in transportation, works and infrastructure, industry, agriculture, tourism, and wealth creation to drive job opportunities and economic competitiveness. Other key areas include health (with expanded access to quality services), education (to combat brain drain and retain talent), housing (for affordable schemes), environment (flood control and urban renewal), public order and safety (security enhancements), and social protection.
Revenue projections supporting the budget include an estimated ₦3.99 trillion in total inflows, with ₦3.12 trillion from internally generated revenue (IGR) — a testament to Lagos' robust tax administration — and ₦874 billion from federal transfers. To bridge the gap, a deficit financing plan of approximately ₦243.3 billion has been outlined, drawing from bonds, loans, and other sustainable sources.
The budget process began in late 2025 with the governor's presentation, followed by a detailed review by the House Committee on Economic Planning and Budget, chaired by Hon. Sa’ad Olumoh. Lawmakers conducted engagements with ministries, departments, and agencies (MDAs), ensuring alignment with residents' needs amid national economic challenges. Speaker Mudashiru Obasa and other legislators praised the proposal as realistic and growth-oriented, noting Lagos' economic resilience.
This ₦4.4 trillion budget marks a historic high, continuing the upward trajectory from ₦1.1 trillion in 2021 to the current figure — an increase of over ₦3 trillion under Sanwo-Olu's leadership. It signals Lagos' ambition to maintain its status as Africa's leading economic hub through infrastructure renewal, human capital development, and inclusive policies.
Governor Sanwo-Olu assured residents of responsible and transparent implementation, with close monitoring to ensure funds deliver tangible benefits in roads, schools, healthcare, security, housing, and economic interventions. As the state enters 2026, the “Budget of Shared Prosperity” positions Lagos for accelerated progress, sustainable growth, and improved welfare for its over 20 million residents.
